European product recalls hit record high in 2023, Sedgwick reports

Product recalls in Europe reached a record 12,498 events in 2023, up 18.5% on the previous 12 months and setting a ten-year high for recall activity in all four quarters, according to Sedgwick, Of the five product groups tracked by Sedgwick’s Recall Index Report – with consumer products split into three sub-groups – food and drink, medical devices, pharmaceutical, electronics and clothing all recorded an uptick in product recalls, with all but pharmaceutical hitting a ten-year high. The automotive sector saw a fall in product recall events in 2023, but still faced the second-highest number in the past ten years. Toys was the only other category to record a drop in recalls. Automotive recalls were down 3.3% in Europe last year to 727, after a significant drop of 51.2% in the fourth quarter to 106 recalls. Injury was the leading cause of European automotive recalls, accounting for 75% of all events in the sector. However, Sedgwick highlights that fire-related events reached record-breaking levels in 2023, accounting for 20% of annual recalls. The UK led with the most motor notifications at 40.4%, followed by Germany at 34.3% and France with 9.6% of the total. European food and beverage recalls increased 7% in 2023 to 4,837 events, setting a new ten-year high. This was driven by a fourth quarter increase of 9.5% over Q3 to 1,308 events. Non-bacterial contamination was the leading cause of sector recalls in 2023 with 1,990 events, Sedgwick’s report reveals. Pharmaceutical recalls in Europe rose 7.7% last year to 335 events, although Q4 ended the year with a drop of 40.9%. Safety concern was the leading cause of recall in 2023, Sedgwick finds, accounting for 31.9% of events. This was followed by foreign materials/contamination and mislabelling. France was the top issuing country in 2023 with 78 notifications, followed by Germany and the UK. Medical device recalls were up 20% in 2023 to 3,306, Sedgwick reports. Device failure was the leading cause of recall activity in the sector with 454 events, rising 92% between Q3 and Q4. Of the three consumer product sub groups monitored by Sedgwick, electronics recalls were up 48.6% in 2023 to 528, driven by a quarterly high in Q4. Lighting chains were the most recalled consumer products followed by USB chargers, travel adaptors and electric scooters. Clothing recalls in Europe rose 20% in 2023 to 286, the highest annual total since 2015. Children’s hoodies were the most recalled product of 2023. Toy recalls was the only consumer group to record a drop, down 18.4% in 2023 to 507, marking the fourth-lowest annual total in ten years. Chemical risk was the most common cause of European toy recalls in 2023, led by plastic dolls and toy slime. Soft toys recorded the biggest rise in toy recalls, up 38.5%. Sedgwick says regulators from all industries across the EU and the UK are focused on environmental areas, including proposed new rules to lower emissions and prevent firms from greenwashing. Manufacturers are also facing new waste disposal and packaging material rules through the EU’s Packaging and Packaging Waste Directive and the Waste Framework Directive. This sets targets for food waste reduction by 2030, affecting manufacturers and restaurants, as well as paper, metal, plastic and glass waste industries, with an amendment in place that would ban manufacturers from destroying unsold footwear and textiles. Sedgwick says regulators are also alert to new safety risks from AI and machine learning, although the UK and EU have diverged in their approach. While Sedgwick says the UK’s approach is business-friendly, allowing industries to develop their own rules instead of laying down regulations, the EU is taking a risk-based approach to AI developers and users that will require transparency. The EU’s Artificial Intelligence Act and Cyber Resilience Act were provisionally approved by the European Parliament and the European Council at the end of the last year, and could see a ban on AI systems considered to pose an “unacceptable risk” within six months of the rules getting final approval. “Regulators across the UK and EU are trying to protect consumers from risks of new technologies – whether those are AI or e-commerce marketplaces. They are also trying to ensure that companies are doing their part to protect the environment and be accountable for the full lifecycle of the products they make or distribute. While these are admirable goals, they place heavy burdens on companies to comply,” Sedgwick says. It further warns: “Regulators in the EU and UK are enacting layers of regulations to protect the environment as well as public safety. This means that companies need to be aware of not only their own actions but the operations and practices of their entire supply chain. Consumers are also looking for more transparency and information about how products are made and advertised.”

European product recalls hit record high in 2023, Sedgwick reports

Regulators focused on new environmental laws and raising liability across supply chains

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